Ten Punjab MLAs have moved the Punjab and Haryana high court challenging the income tax department's notice to them for payment of R 2 crore capital gain on an amount that they are allegedly "yet to receive" from the Tata Housing company as they had given their land for the company's upcoming Camelot housing project in Kansal, SAS Nagar.
Taking up the petitions filed by sitting and former MLAs, Bibi Jagir Kaur, Sucha Singh Langah, Sewa Singh Sekhwan, Charanjit Singh Atwal, Jagtar Singh Rajla, Gurdev Kaur, Tara Singh Ladal, Sukhdev Singh and Davinder Singh Cheema, the high court issued notices to the income tax department on Thursday.
The case so far
The Punjab MLAs' Co-operative House Building Society came into existence in 2000. As per the agreement of the society's land with Tata, each MLA was to get R 82.5 lakh and a flat in lieu of their plots. The Supreme Court recently stayed the construction of the Tata housing project.
Appearing for the MLAs, their counsel told the court that the total amount which the MLAs received was below R 30 lakh each and no flat had been given to them as of now. The advocates submitted that the income tax department could not charge tax as they were yet to receive the full amount.
The MLAs had lost their case before the income tax appellate authority before they moved the high court.